Brookfield Property Partners (BPY.UN.TO)

Brookfield's story is appreciation over time. It's been flat lately, but the dividend is solid. Brookfield companies are solid long-term companies. Dividend over 6%.

She owns the parent, Brookfield Asset Management, rather than this subsidiary. BPY just bought General Growth Properties, which is the second-largest mall operator/owner in the US. BAM owns about 60% of BPY. She thinks this is a good long-term play with very experienced management. The company’s investments are global, with 60% of property in the US and the rest elsewhere. The company owns a variety of types of real estate, not just malls. GGP shareholders will get a combination of cash and Brookfield stock. If enough of them sell the stock, this will depress share prices. BPY’s plan for GGP is to redevelop the malls, to introduce condo’s and apartments, movie theaters, fitness centers, and other lifestyle properties to use the space that is being freed up by the departures of some large retailers. BPY is experienced in this type of development. It pays a strong dividend, 6.3%. It is a business that is good to own for the long term. She chooses to own it via the parent company rather than directly. Yield 6.3%.

The parent, Brookfield, creates a lot of value over time. Long story short, BPY.UN could remain frustrating for investors for six months during this complicated GGP deal. In the long-run, this should create a lot of growth for this REIT. He thinks Brookfield considers BPY as their number one flagship vehicle.

Likes the dividend, likes the Brookfield group. Diversified globally. Good entry into the world real estate market. (Analysts’ price target is $31.)

They are one of the subsidiaries of Brookfield Asset Management. They have been very active the last few months. They bought the 2nd biggest mall operator in the US. Is a great long term hold. They sell more mature assets once they have it going smoothly. They are buying large parcels of land and buildings and redeveloping and repurposing them to get higher returns.

Any growth in next years? Brookfield group as a whole, pretty heads-up operation. Used to own. Stock has come down from its high. Could easily get back into low $30s. From a technical standpoint, seems to have turned a corner. Interest sensitivity concerns not valid, until fixed income exceeds dividend payouts. First-class types of investments, so safety is built into their portfolios. Good bet for income, nice dividend.

Really smart guys. The index selling has created a buying opportunity. Cheaper then its ever been. Dividend yield of 6.2% without a lot of drama. (Analysts’ price target is $31.35)

Great managment. Has a US$24 target on it. It has strong fundamentals. He likes the Brookfield companies. He has sold a bit of this stock to raise cash, but still holds it. (He holds 15-25% cash in his portfolios.)

The problem is that the shares have traded down into a condition where the market is concerned about the quality of the balance sheet, which is on the weak side.

(A Top Pick Feb 8/17, Down 11%) There was the rapid move on interest rates. It trades at a 20% discount to NAV, now closer to 25%. Long term it will work out but the market is digesting an acquisition causing them to issue stock. The acquired company was in an index but BPY.UN-T is not so some will have to sell the stock received as part of the acquisition.

It is a very well managed group of companies. The management do a really good job of managing what they have. The market is re-pricing high yielding situations. You have to have some growth in your portfolio. These things will be under pressure. You want to see some growth with the yield and see if the total of yield plus growth is satisfactory. He wants at least 10% total return in order to review it.

He is looking for value. There are dilutive concerns, concerns about an acquisition and it is a multi class structure. It is giving you one of the highest yields it has ever given you since it has traded. These are real smart guys. You will get paid nicely to wait. The management will really add value over time. (Analysts’ target: $31.20).

This company owned about 40% of GGP (a major US retail mall operator) and raised their offer to purchase more. He thinks their investment in GGP is good. The units trade at a discount to NAV. He would hold on to this for long term appreciation.

Breaking news: Brookfield Property Partner buys GGP. He's not surprised since Brookfield is always looking for acqusitions, and BPY already had an interest.